Banks to add further £1bn to PPI provisions - report

The four biggest high street banks will boost their payment protection insurance (PPI) provisions by a combined amount of £1bn, Sky News reports.

Banks have already set aside billions of pounds to compensate customers who were mis-sold PPI policies. But Sky News said Lloyds Banking Group, HSBC, Royal bank of Scotland (RBS) and Barclays would add still more to these provisions in the second quarter.

Citing industry sources, Sky News said Lloyds and HSBC will set aside more in the second quarter than the £375m and £300m they put into the provisions in the first quarter respectively.

RBS is expected to add an amount similar to the £125m it put aside in the first quarter, While Barclays will add an amount smaller than the £300m it pumped into PPI reserves in the first quarter.